The GDL union, which mostly represents train drivers but also some other railway staff, reached a deal with state-owned Deutsche Bahn that will prevent further transport chaos for Europe's biggest economy.

Bodo Ramelow, a left-wing state governor brought in to help resolve the dispute, said Wednesday that the agreement would help ease the workload on train drivers by reducing overtime and setting a 38-hour work week.

The deal also sees a two-stage pay increase of more than 5 percent in the coming years, one of the key demands made by GDL.